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A New Frontier for Inverse’s Anchor Money Market

Patb
Patb

Head of Growth

InverseNewAnchor

3 min

Cover Image for A New Frontier for Inverse’s Anchor Money Market

There exist limitless opportunities in every industry. Where there is an open mind, there will always be a frontier. - Charles Kettering

Recently, new proposals went live on Inverse’s on-chain governance system, GovernorMills, to re-enable deposits and borrowing on our flagship money market, Anchor.

First, some background. On April 2nd, the Keep3r TWAP oracle for INV was attacked using a capital-intensive manipulation of the INV/WETH price oracle on Sushiswap, resulting in a sharp rise in the price of INV which subsequently enabled the attacker to borrow ~$8 million (at current prices) in DOLA, ETH, WBTC, and YFI.In the immediate aftermath, we paused all borrowing on Anchor and we’ve since been hard at work to develop newer and safer options for bringing it back online. For those affected by that day’s incident, we are already preparing initial payments as part of our make-good commitment and your assets are being moved to a paused/deprecated assets section of Anchor until our commitments to you are satisfied. 

Now for the fun part: we are turning on our money market again and we think you’ll really like what we are doing.

First, we are adding a fresh set of yield-bearing collateral assets in collaboration with our friends at Yearn Finance. Deposit stablecoins like DOLA into a yield-bearing DOLA-Yearn vault like this one currently yielding over 4% and bring the receipt token (yvcrvDOLA in this case) and deposit it here as collateral and … very soon … receive INV rewards. All our new collateral asset additions are yield-bearing which means as they appreciate it makes it quicker – all things being equal – to repay DOLA loans against that collateral. You can now also deposit yearn tokens from a total of four Yearn stablecoin vaults: yvDOLA, yvUSDC, yvUSDT, and yvDAI. 

Using yield-bearing assets from Yearn as collateral for DOLA loans is quintessentially defi and an exciting shift for Inverse. These four assets are just the first of multiple yield-bearing tokens we are adding from Yearn and other partners.

Initially, we will only enable borrows with DOLA against these collateral assets. It is increasingly likely that we will offer limited ability to borrow non-DOLA collateral assets and instead will focus on their mission as yield-bearing collateral for DOLA loans.

The news many of you have been waiting for – a new price feed/oracle for our INV governance token – is in the final phases of testing so is not part of this announcement.

Lastly, the name of our money market – “Anchor” – is being retired in favor of its new name - “Frontier.” This name better reflects the attitudes of many of us that we are on the leading edge – the frontier – of a better approach to decentralized finance. Investors content with the tradfi status quo aren’t hanging out in our Discord, but some of the more rebellious and independent thinkers are there and we’re looking for more of those types to come join us at Frontier.


Patb
Patb

Head of Growth


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